The National Statistics Office has projected a 4.5 percent growth in Nepal’s economy in the second quarter of the current fiscal year 2082/83. Key contributions to this economic expansion came from increases in electricity production, financial services, livestock products, and tourist arrivals, the office stated. Although the construction and mining sectors contracted, the electricity and gas sector showed a remarkable growth of 22.75 percent.
On Chaitra 24 in Kathmandu, the National Statistics Office released its quarterly national accounts for the second quarter (Kartik–Poush) of fiscal year 2082/83, estimating a 4.5 percent growth in the economy. The quarterly national accounts data presented a year-over-year comparison for the same quarter without seasonal adjustment.
According to the office, growth in electricity production and distribution, deposit mobilization and loan disbursement, non-life insurance premium collections, production of livestock products, fruits and vegetables, trade services, tourist influx, and industrial activities contributed to economic expansion. All 18 industrial classifications recorded positive growth rates during this period.
The government had set a target economic growth rate of approximately 6.5 percent for this year. However, the office’s analysis highlighted a relatively lower growth rate in this quarter, attributing it to declines in imported construction materials, paddy production, and the output of certain domestic goods.
Seasonally unadjusted data indicate that the economy expanded by 2.04 percent in the second quarter compared to the first quarter of the current fiscal year. Of the 18 industrial classifications, 16 showed growth while two sectors—construction and mining and extraction—experienced contraction.
The electricity and gas sector contributed most significantly to the economy, achieving a 22.75 percent growth rate. Agriculture remains the largest sector, but its growth rate was limited to 2.21 percent compared to the same period last year. The office noted that reductions in paddy cultivation notably impacted the agricultural sector.
Financial and insurance services, transportation and storage, accommodation and food services, wholesale and retail trade sectors expanded by 12.51, 9.65, 5.18, and 4.11 percent respectively. Wholesale and retail trade, which holds the second largest share of the economy, is estimated to grow at 4.11 percent, supported by increased domestic production and imports of industrial goods.
Water supply, sewage and waste management recorded a modest growth of 0.55 percent, while public administration, defense and compulsory social security grew by 1.11 percent, and education by 1.16 percent, reflecting relatively low growth rates in these areas.
In the second quarter of fiscal year 2079/80, the economy contracted by 1 percent. Since then, the economic growth rate has remained roughly stable each quarter. The National Statistics Office reported a 3.24 percent growth rate in the first quarter of the current fiscal year.
Compared to the previous quarter, the largest growth was observed in transportation and storage services, with a growth rate of 6.20 percent. Agriculture grew by 2.48 percent; electricity and gas by 3.16 percent; financial and insurance services by 3.82 percent; and education by 1.22 percent. Construction and mining and extraction sectors declined by 0.59 percent and 0.85 percent respectively, according to spokesperson and Deputy Chief Statistician Dhundhiraj Lamichhane.
He explained that quarterly national accounts estimates are published within 90 days after the end of each quarter. The office has been releasing such quarterly national accounts estimates since fiscal year 2067/68. The Jagaran Nepal Jana Andolan (JPNG) this year caused economic uncertainty in the first quarter, but various efforts by the election government during the second quarter aimed to revitalize the economy.
